§ 24-71.3-116 — Transferable records

Colorado § 24-71.3-116

• Jurisdiction: Colorado
• Title 24: Government
• Art.: Uniform Electronic Transactions Act

Text

(1) In this section, transferable record
means an electronic record that:

(a) Would be a note under article 3 of the Uniform Commercial Code, title
4, C.R.S., if the electronic record were in writing; and

(b) The issuer of the electronic record expressly has agreed is a transferable
record.

(2) A person has control of a transferable record if a system employed for
evidencing the transfer of interests in the transferable record reliably establishes
that person as the person to which the transferable record was issued or
transferred.

(3) A system satisfies subsection (2) of this section, and a person is deemed
to have control of a transferable record, if the transferable record is created,
stored, and assigned in such a manner that:

(a) A single authoritative copy of the transferable record exists that is
unique, identifiable, and, except as otherwise provided in paragraphs (d), (e), and (f)
of this subsection (3), unalterable;

(b) The authoritative copy identifies the person asserting control as:

(I) The person to which the transferable record was issued; or

(II) If the authoritative copy indicates that the transferable record has been
transferred, the person to which the transferable record was most recently
transferred;

(c) The authoritative copy is communicated to and maintained by the person
asserting control or its designated custodian;

(d) Copies or revisions that add or change an identified assignee of the
authoritative copy can be made only with the consent of the person asserting
control;

(e) Each copy of the authoritative copy and any copy of a copy is readily
identifiable as a copy that is not the authoritative copy; and

(f) Any revision of the authoritative copy is readily identifiable as authorized
or unauthorized.

(4) Except as otherwise agreed, a person having control of a transferable
record is the holder, as defined in section 4-1-201 (b)(20), C.R.S., of the transferable
record and has the same rights and defenses as a holder of an equivalent record or
writing under the Uniform Commercial Code, title 4, C.R.S., including, if the
applicable statutory requirements under section 4-3-302 (a) or 4-9-308, C.R.S., are
satisfied, the rights and defenses of a holder in due course, a holder to which a
negotiable document of title has been duly negotiated, or a purchaser, respectively.
Delivery, possession, and indorsement are not required to obtain or exercise any of
the rights under this subsection (4).

(5) Except as otherwise agreed, an obligor under a transferable record has
the same rights and defenses as an equivalent obligor under equivalent records or
writings under the Uniform Commercial Code, title 4, C.R.S.

(6) If requested by a person against which enforcement is sought, the person
seeking to enforce the transferable record shall provide reasonable proof that the
person is in control of the transferable record. Proof may include access to the
authoritative copy of the transferable record and related business records
sufficient to review the terms of the transferable record and to establish the
identity of the person having control of the transferable record.

Legislative History

Source: L. 2002: Entire article added, p. 853, � 1, effective May 30. L. 2006: (1)(a) and (4) amended, p. 505, � 55, effective September 1.